Spotlight on Anup Maheshwari, Co-Founder & Chief Investment Officer, 360 ONE Asset
Global Thought Leader Spotlight
Anup Maheshwari, Co-Founder & Chief Investment Officer, 360 ONE Asset
In my role as the Chief Investment Officer of 360 ONE Asset, I am directly responsible for the company’s public equity business and a member of investment committees for 360 ONE’s alternative investment business, which includes private equity and private credit strategies.
Drivers of the Indian Growth Story
India currently stands at an inflection point of economic growth and wealth creation, set on its unwavering path to become the world’s third largest economy by 2030.
A vast majority of young aspirational population, bigger than the size of many countries combined, is driving India’s consumption growth story. Propelled by the increasing adoption of technology, continued financialisation of assets and aspirations to become a global manufacturing hub, India’s impressive growth stands out against the major world economies.
Whilst this growth is not restricted to any particular sector, we believe that financial services and information technology sectors will continue to lead the consumption journey of India. For example, retail credit to GDP ratio in India currently stands at about 20%, whereas it is approximately 30-50% in other emerging markets and 50-100% in most developed markets, which shows huge under-penetration of consumer lending across all pockets in India.
At the same time, manufacturing exports are projected to be a very critical part of India’s growth journey in the next 7 to 10 years and have the potential to reverse India’s current account deficit and stabilise the Indian Rupee.
The underlying reasons for the relatively expensive valuations in Indian markets can be attributed to its structural long-term growth profile. Despite this, India is still the best market for bottom-up opportunities as reflected in its long-term performance via MSCI India Index generating 16.2% USD returns, against 3.8% by MSCI Emerging Market Index and 13.1% by S&P 500 Index, in CAGR for the five-year period ending 31 July 2024.
Implications for Institutional Investors
India has produced the largest number of compounders in the past 20 years in comparison to major financial markets such as US, China and Japan. For instance, 111 out of top 500 companies in India have generated a CAGR return in excess of 20% in USD terms, compared to only 17 in the US, 13 in China and none in Japan. This demonstrates the ability of Indian companies to scale over long periods of time, thereby creating significant shareholder value.
Despite the huge potential that India offers and sustained growth that has been delivered by the equity markets in the past, global investors are heavily underweight India. India currently makes up just about 1.7% of the MSCI All Country World Index and only 16.7% of the MSCI Emerging Market Index, which is a very suboptimal allocation.
The long-term growth trajectory of India provides an exceptional opportunity for alpha-seeking foreign investors and hence, we believe that India should be considered for a dedicated stand-alone allocation in every global portfolio.
Anup will be presenting at Global Investment Institute’s upcoming Equities Investment Forum, taking place on Wednesday, 11 September 2024 at the Grand Hyatt Melbourne, Victoria.
To register your interest in attending, click here or for more information email zlatan@globalii.com.au.
Anup Maheshwari, Co-Founder & Chief Investment Officer, 360 ONE Asset
Anup is Co-Founder & CIO of 360 ONE Asset (formerly known as IIFL Asset Management). Anup is responsible for the investment and strategy for 360 ONE Asset’s business including mutual funds and Alternative Investment Funds (AIFs). He plays a key role in meeting the company's aggressive growth goals as well as product development and devising an innovative investment strategy.
An alumnus of Indian Institute of Management, Lucknow, he has over 28 years of work experience in the financial services sector. Prior to joining 360 ONE Asset in 2018, he has been associated with DSP Investment Managers Private Limited (formerly known as DSP BlackRock Investment Managers Private Limited, Blackrock’s JV in India) for over 21 years as an Executive Vice President & Chief Investment Officer. He was also associated with HSBC Asset Management (India) Private Limited & Merrill Lynch India Equities Fund (Mauritius) Limited and Chescor, a British fund management firm.
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